As the COVID-19 pandemic spread across the globe in early 2020, its impact on M&A volume was immediate, and recalibrated the ways in which buyers and sellers analyze and value targets.
My colleagues and I have released a new article as part of A&M's Your Next Deal Will Be Different series discussing common COVID-19 adjustments that buyers and sellers are making to EBITDA, trends in valuation and forecasts, and trends in contingent consideration provisions.
I invite you to download our article and reach out to discuss your own corporate deal strategy.
Corporations revisiting their core competencies and long-term business strategy may find divestitures of certain business segments or sales of minority interest investments very attractive to hungry capital currently sitting on the sidelines. Latest estimates indicate that private equity and venture capital have $1-2 trillion of dry powder. Also, the flurry of recently announced SPACs will look to fulfill their mandate over the next 12-24 months, resulting in an increasingly competitive deal landscape.
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